How Generative AI Is Changing Creative Work

How Generative AI Is Changing Creative Work

Generative AI, powered by complex machine learning models, is revolutionizing the field of creative work. By predicting the next word or image based on previous sequences, generative AI software has the potential to enhance and transform various creative processes.

Online communities like Midjourney and open-source providers such as HuggingFace have played a significant role in the development of generative models. These models can be fine-tuned for specific content domains with minimal data, resulting in specialized versions like BioBERT for biomedical content, Legal-BERT for legal content, and CamemBERT for French text. OpenAI has discovered that even a small set of domain-specific examples can improve the accuracy and relevance of outputs from their powerful GPT-3 model.

Human involvement remains crucial in the effective utilization of generative AI. Creative prompts are key in generating creative outputs, and the role of a "prompt engineer" is emerging as a profession. This involves providing initial prompts, editing, and iterating on the AI-generated content. Companies like Jasper have seen significant improvements by fine-tuning GPT-3 models with the best outputs from their customers.

Generative AI has found applications in various industries. Nestle, for example, utilized an AI-enhanced version of a Vermeer painting to promote one of its yogurt brands. Stitch Fix, a clothing company, is experimenting with DALL-E 2 to visualize clothing based on customer preferences. Microsoft's Github has CoPilot, a GPT-3 version for code generation, and Facebook's BlenderBot is designed for dialogue. Google's BERT is used to understand search queries and forms part of the DialogFlow chatbot engine.

Research suggests that Language Model models (LLMs) can effectively manage an organization's knowledge when trained on specific text-based knowledge within the organization. Morgan Stanley is collaborating with OpenAI's GPT-3 to fine-tune training on wealth management content, enabling financial advisors to search for existing knowledge and create tailored content for clients easily.

In the realm of advisor shares, it is essential to establish a vesting schedule for advisors similar to that of employees. This schedule typically spans two years, with monthly vesting and no cliff. Additionally, it is worth considering if a potential advisor would be willing to invest in the company instead of taking equity. Investing directly aligns their interests with the company's success and sends a positive signal to future investors.

Choosing advisors should be approached with the same care as selecting co-founders. Advisors can greatly contribute to a company's success, but they can also become distractions or liabilities. Different types of advisors offer various benefits. Some provide value through association, while others act as sounding boards or even invest directly in the company.

It is crucial to clearly define what you expect from an advisor and document the agreement. This includes determining their area of expertise, the specific areas they will assist you with, and the percentage of equity or other compensation they will receive. Formalizing the relationship with a signed agreement helps align both parties and ensures clarity, especially when equity is involved.

When it comes to advisor shares, it is recommended to consult with a lawyer and work closely with your potential advisor to create an agreement that suits everyone involved. The allocation of equity for advisors varies based on factors such as company stage and the advisor's contribution. For companies that have raised under $2 million, advisor RSAs typically range from 0.2% to 1% of the company, while advisor NSOs range from 0.1% to 0.5%.

It is advisable to avoid a four-year vesting schedule for advisors since their value is usually delivered upfront. Re-evaluating the relationship after a year or two allows both parties to reassess and determine whether to continue the collaboration.

In conclusion, generative AI is transforming creative work by providing powerful tools to generate content. However, human involvement remains essential in guiding and refining the output. Companies across industries are finding innovative ways to utilize generative AI, and the field continues to evolve. When it comes to advisor shares, careful consideration and clear agreements are crucial for a successful and mutually beneficial relationship.

Actionable Advice:

1. Embrace generative AI as a tool to enhance creative work but remember the importance of human input throughout the process.
2. When selecting advisors, treat the process as you would when choosing co-founders. Look for individuals who can complement your weaknesses and bring value to your company.
3. Establish clear agreements with advisors, documenting the specifics of their involvement, compensation, and equity allocation if applicable. Seek legal advice to ensure a fair and transparent arrangement.